Column for Oct. 7, 2010

I am sure that there are a lot of you are like me in that you know of someone who has been out of work for some time now. I stand by my earlier assessment that the economy was not as bad as many people made it out to be. Unfortunately, just as with the Great Depression at the end of the 1920's, government intervention that was intended to help had just the opposite effect. But that is a different subject for a different column.

There are two people in my family who lost their jobs in the past couple of years. Both of them were long time employees of their respective employers. Both ended up being laid off and receiving unemployment benefits while they applied for new jobs. Neither has found new employment to this day. One finally reached the proper age for retirement, so he started drawing on his retirement savings. The other decided to just become a stay-at-home mom full time rather than re-enter the workforce.

Both of these people ended up being "overpaid" in their unemployment benefits. The elder of the two was the first one laid off and ended up paying back about a thousand dollars (as I recall) to the state. The younger of the two was amongst the 38,000 people who recently got nastygrams from the North Carolina Employment Security Commission saying that she owed the state.

As a matter of fact, this young lady received a total of four letters saying that she owed the state money. Three of those letters all arrived on the same day. You may have read, seen, or heard about this story in recent newspaper articles, on television, on the internet, or on the radio. I heard numerous stories about it. It was even national news.

Every one of the people that received nastygrams from the government allegedly received benefits above which they were entitled. The state knew that over payments were being made as far back as January but did nothing about it then. They waited until September to do something about it and put pressure on the poverty-stricken to repay money they did not have.

My family member was rather unhappy with the demand for money back since she, like tens of thousands of others in North Carolina, is still out of work. She received the alleged overage money through no fault of her own. She showed me the letters and they were as confusing to me as they were to her. She told me that every time her unemployment benefits were supposed to expire, she would get an extension of benefits letter. After getting these four letters saying that she owed the state money, she got yet another letter informing her of yet another extension of her unemployment benefits.

I am glad to say that Governor Beverly Perdue did the right thing by stepping in and making sure that the people who received any overage did not have to repay it. I am not much on government entitlements, but unemployment benefits are a bit different than welfare, WIC, food stamps, government housing, and other such programs. People pay into the system, as do employers for benefits during such cases of unemployment.

As I was told about the fun that my family members had in dealing with a state agency, I could only marvel at the gross inefficiency. The same state that knowingly overpaid unemployment benefits and failed to correct the problem is the same state government that tries to run our education system. The same state government that sent duplicate letters to 38,000 unemployed people is the same state that is ruthless in collecting back taxes from its citizens.

Look at this on a larger scale. If a state government can be so inefficient with unemployment benefits for 38,000 people, imagine how inefficient and wasteful the national government is with all of its giveaways and entitlement programs. I imagine that it is 50 times or more as bad as North Carolina.

When I think about government inefficiencies like this, I wonder why in the world we agree to depend upon them for retirement income programs, for running the mail service, for income for the elderly and infirm, and for medical care. Is the government that knowingly did not make correct payments to the unemployed then tried to demand the money back, the same government that you want taking decisions for your children's education or for your health care? Not me.